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UnitedHealth Expands Internationally

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In an effort to expand its international business UnitedHealthcare International, a unit of U.S. health insurer UnitedHealth Group Inc. (UNH - Analyst Report) has announced a global health insurance program called Global Solutions.

The program will be available for all the employers, small as well as big, based internationally.

UnitedHealth has tied up with MAXIMA Insurance, Inc., to provide its international health insurance service in the Czech Republic. In this region the company will be targeting all the expatriates which are mandated to hold a medical coverage as per the immigration rules of the country.

The insurer has also tied up with Medical Services Organisation in South Africa to provide cashless claim service. UnitedHealth will be providing its service to more than 30 countries in the African continent.

Yet another instance of UnitedHealth expanding its international operation was its buyout of Amil Participações S.A. of Brazil.

It is the long term strategy of the company to expand its international operations which provide a healthy margin. The roll out of this new program marks a strategic move by UnitedHealth, indicating aggressive international expansion at a time when growth in the domestic markets is facing pressures from the new regulations. Over time we expect more deals from the company, pertaining to its international expansion where it faces less competition.

UnitedHealthcare International has business operations in 123 countries across the globe.

The U.S. commercial market is fully penetrated and becoming increasingly concentrated among efficient and large providers. As they seek ways to achieve greater top line growth, many U.S. insurers are looking to the international markets. Also increased regulation on account of Health Care Reform has also led the move by health insurance players Aetna Inc. (AET - Analyst Report), CIGNA Corp. (CI - Analyst Report), and Humana Inc. (HUM - Analyst Report) to look for business opportunities overseas.

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